MARKETING PLAN -
OLPER'S MILK
By Tazeen Azeem
COMPANY- ENGRO FOODS
HISTORY:
established in 2005 as part of a diversification process at the Engro Group
plant located at Sukkur on 23 acre land
plant has been established at a cost of Rs. 1 billion which provides direct employment to 750 people
Engro Foods has entered the Food business through milk processing and sale with the company’s vision to pursue growth opportunities based on country fundamentals and own strength
SWOT ANALYSIS - STRENGTHS1 . Engro’s Back
Olper’s is a brand of ENGRO foods. ENGRO is a well established
brand name in Fertilizer, IT and infrastructure business so
customers will automatically have a brand association with
Olper’s and can easily attract foreign investors in backing
it against other competitors such as Nestle.
2. Relationship with distributors
ENGRO foods can easily afford research and development
cost. It can also distribute the brand through better channels
because of its long term relationship with distributors in the
agriculture sector.‡
3 . PR with farmers :
Strong & long term relationship with farmers who are willing to
supply milk to the company.‡
SWOT ANALYSIS - STRENGTHS
4 . Positive response from customers
In first year, EFL crossed 1.4 billion sales which shows customers’ satisfaction upon EFL’s products.‡
5 . Strong consumer & product research
Hired various global research partners like AC Nielsen, Mindshare etc and Mars marketing for strong research about launched products.‡
6 . Third-Generation Plant
Third-generation UHT milk plant in the country ,Plant in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $33 million).
WEAKNESSES
1. Olwell TVC :
Olwell ad which is based on Western life style. Failed to analyze in Pakistan, where practicing Muslims reside and Ignoring the ethics, religious beliefs and cultural values.‡
2. Milk collection & distribution costs :
EFL’s 34 out of 40 milk-collection centers are located in Punjab & one processing plant in Sukkhur (Sindh) so its increases in collection & distribution costs in the terms of travelling etc.‡
3 .Narrow brand portfolio :
EFL’s brand portfolio still consists of just 3products i.e. Olper’s Milk, Olwell Milk and Olper’s Cream Whilst their competitors e.g. Nestle and Haleeb Foods have many brands in dairy product line.
OPPORTUNITIES
1 . Increased farmers' funding by Government
2 . Increased consumption of PLM (processed liquid
milk)
3 . Growing dissatisfaction with loose milk and
increasing awareness about health and hygiene issues
led to increased processed milk consumption.
4 . Pakistan is third largest producer of milk
Pakistan with 32 billion liter of milk a year,3 billion litres
in the next few years. This is quite an opportunity for
ENGRO foods as there is lot of growth in this part of
the Sector.
THREATS
1 . Consumers’ perceptions and price differentials It is important that Olper’s comes up to the expectations of the customers For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk.
2 . Competition
For Olper’s it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb.
MARKETING MIX
PRODUCT
Olper’s Milk
Launched on March 20,2006.
standardized and homogenized pure UHT (Ultraheat treated) milk with 3.5 % fat and 8.9 % solid non-fats.
available in easy-to-open, 6- layered Tetra Pak Brick Aseptic red packaging and comes with a 3 months shelf life.
SHIPPING UNITS
1 Litre (1000 ml ) : 12 packs per carton
½ Litre (500 ml) : 12 packs per shrink-wrapped tray
¼ Litre (250 ml) : 27 packs per shrink-wrapped tray
PROMOTION
TV Cs
print ads
radio commercials
billboards
BTL activities including direct consumer
and shop branding activities
special discounts to retail outlets
Olper’s has gained a proper shelf
placement in the presence of competitors
like Nestle and Haleeb
PLACEMENT
Engro Foods Limited has its own distribution
network.
EFL has divided Pakistan into five regions for
milk distribution namely: Karachi , Lahore,
Islamabad, Peshawar and Multan
Olper’s milk is available in 80 cities across Pakistan
COMMUNICATION STRATEGIES
ATL (Above The Line Activities—television, radio, etc.) and tailor-made Iftaar activations, are aimed at building the necessary association
BTL (Below The Line—brochures, flyers, etc.) have also contributed to the brand’s success
it also involves reaching out to the different locations in various cities and having the housewives participate in learning and showcasing milk-based recipes.
SEGMENTATION AND TARGETING
Demographic segmentation not bounded to any particular age, gender or lifecycle stage
meant for all the users in higher upper or middle class families
specific social class who are health conscious and concerned about their weight
‡Psychographic segmentation
more towards goal-oriented and focused on careers and experiencers
conservatives with traditional beliefs of healthy life with processed milk.
Behavioral segmentation
‡ on the basis of benefits that consumers seek in the milk like drinking , whiteners to tea as well as to feed for their animals.
THANK YOU